Compensation Underway for Ferry Accident Victims

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Last updated at: (Beijing Time) Monday, August 05, 2002

Compensation Underway for Ferry Accident Victims

Compensation for those dead and missing in Friday's major ferry accident in Hejiang County in southwest China's Sichuan Province is underway, local government sources said on Sunday.

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Compensation for those dead and missing in Friday's major ferry accident in Hejiang County in southwest China's Sichuan Province is underway, local government sources said on Sunday.

Three people drowned and 22 others remain missing after the ferry boat they were taking collided with a barge and sank on Friday. Investigators said that the accident was caused by propeller failure and the crew's operational errors.

The Hejiang County People's Court, which was authorized by the local government to handle compensation, on Sunday morning seized 160,000 RMB yuan (about 20,000 US dollars) from the Hejiang CountyNo.2 Shipping Company, owner of the capsized ferry boat.

The money was an initial payout by a local insurance company for collective life insurance the shipping company had taken out on its passengers. None of the victims in the accident was independently insured.

The court has ordered all insurance payments to the shipping company be seized and held as a compensation fund for the victims.The money would be released as soon as all victims were identified,said court president Chen Lisheng.

According to County Magistrate Yuan Shunkang, the Hejiang county government and the municipal government of Luzhou City to which Hejiang is affiliated, have also decided to grant the familyof each victim 2,000 yuan (about 250 US dollars) as damages.

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